In the first quarter of the year, Novaland’s revenue increased by 15% thanks to the handover of key projects in Ho Chi Minh City and suburban areas, but profits were negative because of exchange rate differences.
The above information is stated in the consolidated financial statements of No Va Real Estate Investment Group Joint Stock Company (Novaland – NVL). Net revenue from sales and service provision reached more than 697 billion VND, an increase of more than 15% over the same period last year. This result mainly comes from the handover at projects NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City. The company’s gross profit is nearly 190 billion, equivalent to a gross profit margin of more than 27%.
Meanwhile, financial revenue decreased by more than 30% to about 640 billion VND. Among them, the biggest deficit was profit from investment cooperation contracts when it decreased by 29%.
In total, Novaland still has an after-tax loss of nearly 601 billion VND, an increase of 46.5% over the same period in 2023. Of which, more than 452 billion VND is a loss due to exchange rate differences, mainly from unfavorable exchange rate developments. in the first three months of this year compared to the end of 2023. This causes NVL to reevaluate loans, bonds and other items originating in foreign currencies.
As of the end of March, Novaland’s total assets reached more than 236,480 billion VND. Inventories recorded nearly 140,900 billion VND. Of which, the value of land fund and projects under construction accounts for 93%, the rest is completed real estate and real estate goods, completed real estate waiting to be handed over to customers.
Recently, Novaland has continued to promote financial restructuring activities, typically with an international convertible bond package worth 300 million USD. The company has just received approval from the Singapore International Chamber of Commerce (SICC) to restructure the terms of the above bond package.
During the recent annual meeting, Chairman of the Board of Directors Bui Thanh Nhon announced: “Basically, Novaland has completed the restructuring of domestic and foreign debts and bonds. The company’s assets are still balanced. for debt”.
Recently, the Board of Directors also approved a plan to issue shares worth more than 11,700 billion VND to existing shareholders. The expected offering time is in the second quarter. Along with credit sources from financial institutions, mobilized capital will focus on completing unfinished projects to hand over to customers.
This year, Novaland targets consolidated revenue of nearly 32,600 billion VND and profit after tax of nearly 1,080 billion, increasing 7 times and doubling respectively over the same period. Projects that generate revenue in the coming time are expected to be Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram and housing projects in Ho Chi Minh City. The total number of delivered products could reach nearly 5,200 units this year.